I was on BBC Worldwide yesterday discussing Google and country-by-country reporting
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This is an interesting article as it is yet another example that not only is Google (and other US internet businesses) undermining the UK tax base, it is also and perhaps far more dangerously undermining UK business itself.
It has long been evident that Google is both a search monopoly and an emerging digital real estate monopoliser. It is (along with Amazon) taking over the physical high street real estate of this country and all others it invades.
It’s intention is nothing other than global domination (as this is the only business model that works with global capitalism).
Until the EU and/or the UK (far less likely) stand up to these multinationals and accept that they are undertaking anti-competitive activities, then UK businesses will be decimated by such consumer domination.
http://www.theguardian.com/technology/2016/feb/12/streetmap-loses-google-anticompetitive-search-abuse-case
I understood Google to be saying that the cumulative provision across the period was £196 million which included the £130 million which, in turn, included £18 million in interest payments. So £178 million in tax across the period. At the 19% rate quoted that would equate to around £936 million in taxable profit and would produce an annual average tax payment of around £18million.
I am still having difficulty seeing how the profit retained on the basis of these calculations would cover the capital expenditure, ongoing operational liquidity must be dependent upon the group cash flow. If this is not a “contrivance”what is?
Sorry to change the subject Richard but I thought that this might interest you:
http://www.theguardian.com/australia-news/2016/feb/13/labor-promises-to-cut-negative-gearing-and-capital-gains-tax-concessions
Australian Labor has finally found its nerve – will UK Labour do the same?
Hold breath
I won’t be holding mine – sweating housing to death is not likely to be stopped anytime soon:
“Australia’s federal politicians have been outed as the country’s most eager property investors, casting doubt on their willingness to rein in negative gearing.”
See: http://www.smh.com.au/federal-politics/political-news/how-property-investing-politicians-have-skin-in-the-game-on-the-negative-gearing-debate-20150326-1m8s36.html